Let the Re-test Begin
Every November following a 5% down October has been a down month since WWII. I wouldn't exepct this to be any different given the weak fundamentals in the economy. Friday's numbers could be brutal, that could be the going into the weekend slap that leads to a big sell-off next week. Then again, maybe not. But between today and tomorrow, I'm writing covered calls, selling a few things and where it makes sense selling a few puts of things I'd love to own 30% lower from today's prices.
Folks, earnings are going to be very bad next year and threaten to take until 2012 to rebound fully. Don't be silly and stick 80% of your money into the stock markets again. With inflation highly likely by late next year on the increased money supply, some commodities- Ag in particular- are a great idea. Some closed end funds with great "junk" bond managers trading at a discount still make sense as well.